29.
The on the run yield curve is
30.
The yield curve
31.
What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the
beginning of year 2 and has face value of $1,000?
32.
What would the yield to maturity be on a four-year zero-coupon bond purchased today?
33.
Calculate the price at the beginning of year 1 of a 10% annual coupon bond with face
value $1,000 and 5 years to maturity.
34.
Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year 1
and 6.9% in year 2, what must be the forward rate in year 3?
35.
An inverted yield curve is one
36.
Investors can use publicly available financial data to determine which of the following?
I) The shape of the yield curve
II) Expected future short-term rates (if liquidity premiums are ignored)
III) The direction the Dow indexes are heading
IV) The actions to be taken by the Federal Reserve
37.
Which of the following combinations will result in a sharply increasing yield curve?
38.
The yield curve is a component of
39.
The most recently issued Treasury securities are called
40.
Suppose that all investors expect that interest rates for the 4 years will be as follows:
What is the price of 3-year zero-coupon bond with a par value of $1,000?
41.
Suppose that all investors expect that interest rates for the 4 years will be as follows:
If you have just purchased a 4-year zero-coupon bond, what would be the expected rate of
return on your investment in the first year if the implied forward rates stay the same? (Par
value of the bond = $1,000.)
42.
Suppose that all investors expect that interest rates for the 4 years will be as follows:
What is the price of a 2-year maturity bond with a 5% coupon rate paid annually? (Par
value = $1,000.)
43.
Suppose that all investors expect that interest rates for the 4 years will be as follows:
What is the yield to maturity of a 3-year zero-coupon bond?
44.
The following is a list of prices for zero-coupon bonds with different maturities and par
value of $1,000.
What is, according to the expectations theory, the expected forward rate in the third year?
45.
The following is a list of prices for zero-coupon bonds with different maturities and par
value of $1,000.
What is the yield to maturity on a 3-year zero-coupon bond?
46.
The following is a list of prices for zero-coupon bonds with different maturities and par
value of $1,000.
What is the price of a 4-year maturity bond with a 10% coupon rate paid annually? (Par
value = $1,000.)
47.
The following is a list of prices for zero-coupon bonds with different maturities and par
value of $1,000.
You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. The
bond has a par value of $1,000. What would the price of the bond be one year from now if
the implied forward rates stay the same?
48.
Given the bond described above, if interest were paid semi-annually (rather than
annually), and the bond continued to be priced at $917.99, the resulting effective annual
yield to maturity would be
49.
What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the
beginning of year 2 and has face value of $1,000?